The pair traded up to Y116.11 during the European session last night but held between Y115.01 and Y115.94 through a thin US session, due to the Veteran’s Day holiday there. It then started in Asia at Y115.78 and encountered minor demand from Japanese names early in the session. The demand, noted from the Y115.75/80 region was sufficiently strong to lift dollar-yen back toward Y116.00, and it briefly traded above that for a high of Y116.02. Gains were then capped as those same Japanese names then took profit on the move, pushing the pair back down to Y115.60. A positive start to the Japanese stock market session gave dollar-yen a fresh lift but it struggled to re-visit the earlier highs. Dollar-yen ran into minor resistance off Y115.90 and retreated sharply when Japanese stocks also fell following remarks from Japan’s Chief Cabinet Secretary Suga that he is not preparing for early elections. Dollar-yen fell to a new session low of Y115.24 before recovering again on further news about the elections, to last trade at Y115.60 just after comments from BOJ Governor Kuroda are published.
